TRI POINTE HOMES INC (TPH) Stock Fundamental Analysis
NYSE:TPH - New York Stock Exchange, Inc. - US87265H1095 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to TPH. TPH was compared to 64 industry peers in the Household Durables industry. TPH gets an excellent profitability rating and is at the same time showing great financial health properties. TPH has a bad growth rate and is valued cheaply. These ratings would make TPH suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year TPH was profitable.
In the past year TPH had a positive cash flow from operations.
Each year in the past 5 years TPH has been profitable.
Each year in the past 5 years TPH had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 8.77%, TPH is doing good in the industry, outperforming 67.19% of the companies in the same industry.
TPH's Return On Equity of 12.73% is in line compared to the rest of the industry. TPH outperforms 59.38% of its industry peers.
TPH has a Return On Invested Capital of 9.27%. This is in the better half of the industry: TPH outperforms 64.06% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TPH is in line with the industry average of 10.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.77% | ||
| ROE | 12.73% | ||
| ROIC | 9.27% |
ROA(3y)9.52%
ROA(5y)9.28%
ROE(3y)15.16%
ROE(5y)15.46%
ROIC(3y)10.2%
ROIC(5y)10.07%
1.3 Margins
TPH has a Profit Margin of 9.85%. This is in the better half of the industry: TPH outperforms 79.69% of its industry peers.
TPH's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 12.54%, TPH is in the better half of the industry, outperforming 76.56% of the companies in the same industry.
In the last couple of years the Operating Margin of TPH has grown nicely.
TPH has a Gross Margin (23.52%) which is in line with its industry peers.
In the last couple of years the Gross Margin of TPH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.54% | ||
| PM (TTM) | 9.85% | ||
| GM | 23.52% |
OM growth 3Y-5.72%
OM growth 5Y7.18%
PM growth 3Y-4.72%
PM growth 5Y8.69%
GM growth 3Y-2.33%
GM growth 5Y2.47%
2. Health
2.1 Basic Checks
TPH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, TPH has less shares outstanding
Compared to 5 years ago, TPH has less shares outstanding
Compared to 1 year ago, TPH has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.34 indicates that TPH is not in any danger for bankruptcy at the moment.
TPH has a better Altman-Z score (4.34) than 71.88% of its industry peers.
TPH has a debt to FCF ratio of 1.99. This is a very positive value and a sign of high solvency as it would only need 1.99 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.99, TPH is doing good in the industry, outperforming 78.13% of the companies in the same industry.
A Debt/Equity ratio of 0.30 indicates that TPH is not too dependend on debt financing.
TPH's Debt to Equity ratio of 0.30 is in line compared to the rest of the industry. TPH outperforms 53.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.99 | ||
| Altman-Z | 4.34 |
ROIC/WACC1.13
WACC8.24%
2.3 Liquidity
A Current Ratio of 8.42 indicates that TPH has no problem at all paying its short term obligations.
TPH has a better Current ratio (8.42) than 89.06% of its industry peers.
TPH has a Quick Ratio of 1.89. This is a normal value and indicates that TPH is financially healthy and should not expect problems in meeting its short term obligations.
TPH has a Quick ratio of 1.89. This is amongst the best in the industry. TPH outperforms 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.42 | ||
| Quick Ratio | 1.89 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 20.00% over the past year.
TPH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.86% yearly.
TPH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.83%.
The Revenue has been growing slightly by 7.82% on average over the past years.
EPS 1Y (TTM)20%
EPS 3Y5.7%
EPS 5Y26.86%
EPS Q2Q%-32.04%
Revenue 1Y (TTM)10.83%
Revenue growth 3Y4.1%
Revenue growth 5Y7.82%
Sales Q2Q%-22.99%
3.2 Future
Based on estimates for the next years, TPH will show a very negative growth in Earnings Per Share. The EPS will decrease by -16.12% on average per year.
TPH is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -7.92% yearly.
EPS Next Y-36.73%
EPS Next 2Y-16.12%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-21.32%
Revenue Next 2Y-7.92%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.33 indicates a rather cheap valuation of TPH.
Based on the Price/Earnings ratio, TPH is valued a bit cheaper than the industry average as 79.69% of the companies are valued more expensively.
TPH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.45.
Based on the Price/Forward Earnings ratio of 9.71, the valuation of TPH can be described as reasonable.
Based on the Price/Forward Earnings ratio, TPH is valued a bit cheaper than 64.06% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. TPH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.33 | ||
| Fwd PE | 9.71 |
4.2 Price Multiples
92.19% of the companies in the same industry are more expensive than TPH, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, TPH is valued cheaply inside the industry as 90.63% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.04 | ||
| EV/EBITDA | 5.55 |
4.3 Compensation for Growth
The decent profitability rating of TPH may justify a higher PE ratio.
TPH's earnings are expected to decrease with -16.12% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.27
EPS Next 2Y-16.12%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for TPH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
32.98
-0.65 (-1.93%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners100%
Inst Owner Change-3.29%
Ins Owners2.53%
Ins Owner Change5.71%
Market Cap2.99B
Analysts81.82
Price Target39.95 (21.13%)
Short Float %4.05%
Short Ratio3.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)23.48%
Min EPS beat(2)5.38%
Max EPS beat(2)41.57%
EPS beat(4)4
Avg EPS beat(4)17.57%
Min EPS beat(4)5.38%
Max EPS beat(4)41.57%
EPS beat(8)8
Avg EPS beat(8)19.14%
EPS beat(12)12
Avg EPS beat(12)23.35%
EPS beat(16)16
Avg EPS beat(16)22.97%
Revenue beat(2)1
Avg Revenue beat(2)-0.21%
Min Revenue beat(2)-0.53%
Max Revenue beat(2)0.1%
Revenue beat(4)3
Avg Revenue beat(4)2.94%
Min Revenue beat(4)-0.53%
Max Revenue beat(4)6.64%
Revenue beat(8)7
Avg Revenue beat(8)5.63%
Revenue beat(12)11
Avg Revenue beat(12)8.57%
Revenue beat(16)15
Avg Revenue beat(16)7.68%
PT rev (1m)0%
PT rev (3m)-2.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.54%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-8.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.33 | ||
| Fwd PE | 9.71 | ||
| P/S | 0.7 | ||
| P/FCF | 6.04 | ||
| P/OCF | 5.75 | ||
| P/B | 0.9 | ||
| P/tB | 0.94 | ||
| EV/EBITDA | 5.55 |
EPS(TTM)4.5
EY13.64%
EPS(NY)3.4
Fwd EY10.3%
FCF(TTM)5.46
FCFY16.56%
OCF(TTM)5.74
OCFY17.39%
SpS47.36
BVpS36.64
TBVpS34.91
PEG (NY)N/A
PEG (5Y)0.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.77% | ||
| ROE | 12.73% | ||
| ROCE | 12.45% | ||
| ROIC | 9.27% | ||
| ROICexc | 11.42% | ||
| ROICexgc | 12.25% | ||
| OM | 12.54% | ||
| PM (TTM) | 9.85% | ||
| GM | 23.52% | ||
| FCFM | 11.53% |
ROA(3y)9.52%
ROA(5y)9.28%
ROE(3y)15.16%
ROE(5y)15.46%
ROIC(3y)10.2%
ROIC(5y)10.07%
ROICexc(3y)12.93%
ROICexc(5y)12.56%
ROICexgc(3y)13.88%
ROICexgc(5y)13.51%
ROCE(3y)13.7%
ROCE(5y)13.52%
ROICexcg growth 3Y-4.63%
ROICexcg growth 5Y13.56%
ROICexc growth 3Y-4.66%
ROICexc growth 5Y13.81%
OM growth 3Y-5.72%
OM growth 5Y7.18%
PM growth 3Y-4.72%
PM growth 5Y8.69%
GM growth 3Y-2.33%
GM growth 5Y2.47%
F-Score8
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.99 | ||
| Debt/EBITDA | 1.73 | ||
| Cap/Depr | 80.4% | ||
| Cap/Sales | 0.58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.33% | ||
| Profit Quality | 117.06% | ||
| Current Ratio | 8.42 | ||
| Quick Ratio | 1.89 | ||
| Altman-Z | 4.34 |
F-Score8
WACC8.24%
ROIC/WACC1.13
Cap/Depr(3y)108.44%
Cap/Depr(5y)98.73%
Cap/Sales(3y)0.73%
Cap/Sales(5y)0.73%
Profit Quality(3y)88.62%
Profit Quality(5y)109.85%
High Growth Momentum
Growth
EPS 1Y (TTM)20%
EPS 3Y5.7%
EPS 5Y26.86%
EPS Q2Q%-32.04%
EPS Next Y-36.73%
EPS Next 2Y-16.12%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)10.83%
Revenue growth 3Y4.1%
Revenue growth 5Y7.82%
Sales Q2Q%-22.99%
Revenue Next Year-21.32%
Revenue Next 2Y-7.92%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y20.21%
EBIT growth 3Y-1.86%
EBIT growth 5Y15.56%
EBIT Next Year-17.75%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-24.79%
FCF growth 3Y19.93%
FCF growth 5Y18.68%
OCF growth 1Y-25.26%
OCF growth 3Y18.39%
OCF growth 5Y17.11%